v3.22.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Lessee, Operating Leases [Text Block]
LESSEE
As of December 31, 2022, assets and liabilities recorded under operating leases for properties were $474 million and $553 million, respectively, and $459 million and $529 million, respectively, as of December 31, 2021. The difference between the asset and liability balance is largely driven by increases in rent over the lease term and any strategic decisions to exit a lease location early, resulting in derecognition of the asset. The asset is recorded within other assets, and the lease liability is recorded within other liabilities on the consolidated balance sheets. Lease expense, which is operating lease costs recorded within net occupancy expense, was $86 million, $87 million, and $85 million for the years ended December 31, 2022, 2021, and 2020, respectively.
Other information related to operating leases at December 31 is as follows:
 20222021
Weighted-average remaining lease term (years)10.0 years9.9 years
Weighted-average discount rate (%)2.6 %2.5 %
Future, undiscounted minimum lease payments on operating leases are as follows:
 December 31, 2022
 (In millions)
2023$95 
202486 
202578 
202664 
202753 
Thereafter277 
Total lease payments653 
Less: Imputed interest100 
Total present value of lease liabilities$553 
LESSOR
The following tables present a summary of Regions' sales-type, direct financing and leveraged leases for the years ended December 31. Due to the immaterial nature of operating leases on the consolidated financial statements, prior periods have been revised to reflect the December 31, 2022 presentation.
Net Interest Income
 202220212020
(In millions)
Sales-Type and Direct Financing$52 $59 $67 
Leveraged(1)
12 14 14 
$64 $73 $81 
_________
(1)Leveraged lease income is shown pre-tax with related tax expense of $7 million for December 31, 2022 and $8 million for both December 31, 2021 and 2020, respectively. Leveraged lease termination gains excluded from amounts presented above were immaterial for all periods presented.

 As of December 31, 2022
Sales-Type and Direct FinancingLeveragedTotal
(In millions)
Lease receivable$1,236 $140 $1,376 
Unearned income(189)(62)(251)
Guaranteed residual71 — 71 
Unguaranteed residual173 134 307 
Total net investment$1,291 $212 $1,503 

As of December 31, 2021
Sales-Type and Direct FinancingLeveragedTotal
(In millions)
Lease receivable$1,231 $159 $1,390 
Unearned income(198)(76)(274)
Guaranteed residual49 — 49 
Unguaranteed residual213 137 350 
Total net investment$1,295 $220 $1,515 
The following table presents the minimum future payments due from customers for sales-type and direct financing leases:
 December 31, 2022
Sales-Type and Direct Financing
(In millions)
2023$289 
2024211 
2025166 
2026125 
2027101 
Thereafter344 
$1,236 
Future, undiscounted minimum lease payments on operating leases
Future, undiscounted minimum lease payments on operating leases are as follows:
 December 31, 2022
 (In millions)
2023$95 
202486 
202578 
202664 
202753 
Thereafter277 
Total lease payments653 
Less: Imputed interest100 
Total present value of lease liabilities$553 
Summary of sales-type, direct financing, operating, and leveraged leases
The following tables present a summary of Regions' sales-type, direct financing and leveraged leases for the years ended December 31. Due to the immaterial nature of operating leases on the consolidated financial statements, prior periods have been revised to reflect the December 31, 2022 presentation.
Net Interest Income
 202220212020
(In millions)
Sales-Type and Direct Financing$52 $59 $67 
Leveraged(1)
12 14 14 
$64 $73 $81 
_________
(1)Leveraged lease income is shown pre-tax with related tax expense of $7 million for December 31, 2022 and $8 million for both December 31, 2021 and 2020, respectively. Leveraged lease termination gains excluded from amounts presented above were immaterial for all periods presented.

 As of December 31, 2022
Sales-Type and Direct FinancingLeveragedTotal
(In millions)
Lease receivable$1,236 $140 $1,376 
Unearned income(189)(62)(251)
Guaranteed residual71 — 71 
Unguaranteed residual173 134 307 
Total net investment$1,291 $212 $1,503 

As of December 31, 2021
Sales-Type and Direct FinancingLeveragedTotal
(In millions)
Lease receivable$1,231 $159 $1,390 
Unearned income(198)(76)(274)
Guaranteed residual49 — 49 
Unguaranteed residual213 137 350 
Total net investment$1,295 $220 $1,515 
Minimum future payments due from customers for sales-type, direct financing, and operating leases
The following table presents the minimum future payments due from customers for sales-type and direct financing leases:
 December 31, 2022
Sales-Type and Direct Financing
(In millions)
2023$289 
2024211 
2025166 
2026125 
2027101 
Thereafter344 
$1,236